Home Loans California - Arizona - Utah

Little-Known Sources for FHA Down Payment & Closing Costs

May 26th, 2013 5:08 PM by Nathan Rufty

Need Funds to close escrow on your home? 

Have you heard this before? “I’d like to buy a home but do not have the money for the down payment or closing costs!” There are other avenue sources that are acceptable to FHA! I’m sure you can close a couple more deals – simply by knowing what FHA will accept and the “right” questions to ask your clients!

  • Gift Funds: Family down to a cousin (with no financial interest), employer loan and charitable organizations (with no financial interest) are acceptable donors.

  • Lender Credit: If buyer elects to except a higher interest, the higher the rate, higher the lender credit the will go towards the buyers closing cost.

  • Secured Loans: Can be collateralized by investment accounts or real property. Payments on loans against deposited funds (401K, etc.) are not’t considered in ratios.

  • Down Payment Assist: Programs such as CHDAP, Platinum, Access and Local Governments offer programs to assist with down payment and closing cost for 1st time and 2nd time home buyers.

  • Sale of Personal Property: Requires third-party estimate of worth and proof of sale (car, boat, motorcycle, eBay sales).

  • Bridal Registry Accounts: Account is opened prior to wedding to allow family and friends to deposit cash gifts.

  • Commission from Sale: Family member who is a licensed real estate agent and entitled to the commission from the sale can gift commission to borrower.

  • Rent Credit: When purchasing a home currently being rented, the amount of rental payment that exceeds the fair market rent can be considered part of the cash investment.


Additional details and documentation requirements apply to each source but all are legitimate and workable. Contact me for more information on these outlets to obtain down payment and closing cost at 909-503-5600.

Posted in:General
Posted by Nathan Rufty on May 26th, 2013 5:08 PM



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